Marketing Ch 2

MKT - 1188

SWOT analysis

The assessment of how well an organization or brand is servicing its businesses and target markets by evaluating its internal strengths and weaknesses, and its external opportunities and threats.

environmental scan

The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business.

social forces

The demographic characteristics of the population and its culture.

demographics

The statistical data on a population according to characteristics such as gender, age, ethnicity, income, education, and occupation.

Baby Boomers

women in the work force, educated, diverse, brand loyal, large cohort

Gen X

latch key kids, highest divorce rate, highly educated, employed, has children, somewhat loyal to brands

Millenials

Largest consumer of computer games, integrates technologies into their lives

Gen Z

Born into technology, frugal, impatient, closely compares and contrasts purchases

economy

The collective income, expenditures, and resources that affect the cost of running a business or a household.

macroeconomic forces

The state of a country’s economy as a whole as indicated by its growth rates, inflation rates, unemployment rates, and consumer confidence indexes.

microeconomic forces

The supply and demand of goods and services and how this is impacted by individual, household, and company decisions to purchase.

Gross Domestic Product GDP

The total dollar value of all goods and services produced in a country within a specified time period.

inflation

When the cost to produce and buy products and services gets higher as prices rise.

recession

A time of slow economic activity with two consecutive periods of negative growth.

unemployment rate

Measures the share of the labour force that is not working.

gross income

Total amount of money made in one year before taxes.

disposable income

Balance of income left after paying taxes; income that is used for spending and savings.

discretionary income

Money that consumers have left after paying taxes and buying necessities.

Internet of Things (IoT)

The network of products embedded with connectivity-enabled electronics.

direct competitors

Similar products sold in the same category.

indirect competitors

Products competing for the same buying dollar in a slightly different but related category.

monopoly

When only one company sells in a particular market.

oligopoly

Type of competition that occurs when a few companies control a market.

monopolistic competition

Type of competition where a large number of sellers compete with each other, offering customers similar or substitute products.

perfect competeition

Type of competition where there are many sellers with nearly identical products and little differentiation.

online behavioural advertising OBA

The use of web-based programs to track consumers’ online activity so as to deliver ads that correspond to browsing interests.

Environmental Scan Steps

1) Collect the facts and identify trends
2) Determine the impact that this fact/trend will have on the business
3) Brainstorm, evaluate, and implement ideas to meet business objectives

competitive forces

Alternative products that can satisfy a specific market’s needs.

showrooming

Using mobile devices in-store to check online competitive product reviews and prices, which results in the online purchase of a cheaper product.

technological forces

Inventions from science or engineering research.